INDSUurSve Ty RY
AGENCY SURVEY: HE 2007 TRAVEL INDUSTRY Survey describes a retail travel
RETAIL TRAVEL industry still dominated
by businesses that tend
to be small, well established in terms of their
SELLERS STILL years in operation and
focused primarily on
DOMINATE T AGENCY PROFILE
Single-location agencies, for example, still
BY TRADING dominate the scene, at 54% of the total
Most agencies in the survey, or
ON TRADITION 52%, report being in busines s for
more than 20 years (Fig. 2), up fro m
44% a year ago. That is a margin larger than would be expected in a one-year span.
The difference may be the result of a greater number of small -
er, less-experienced agencies clos -
ing their doors, leaving the large r,
better-financed agencies to pic k
up the slack.
Gross dollar bookings for tr a-ditional travel agencies showa a
slight growth in agency size wh en
comparing data for the last two years
Agencies under $2 million in sales
made up 49% of the total in 2006 and
are now 47% (Fig. 3A, Page 9). Those
between $2 million and $10 million
are 32% of the total for both years.
However, agencies over $10 million
are now 21% vs. 19% in 2006.
Home-based agents report lower
overall sales totals compared with the
previous survey (Fig. 4, Page 9), either because more agents are entering
the home-based field and have not
yet maximized their earning power
or as a result of unknown changes in
In 2006, 20% grossed $25,000 or
less. That figure is now 31%.
Similarly, 23% had bookings of
$500,000 or more, but only 15%
r eached that level in the 2007 study.
Overall, agents indicated that 73%
of total sales in 2006 were leisure and
27% business (Fig. 5, Page 9). The mix
tends to move more toward business
as agency size increases, even among
The latest data confirm the continuing movement away from air sales to
cruises, tours and packaged travel.
Four years of data point out the continuing success of travel agencies in
reducing air bookings, which produce
little or no commissions, as part of
their total revenue. The polling results
(Fig. 6, Page 9) suggest that this trend
At 27% of total sales, airline tickets
however, continue to represent a significant share of agency sales, a share
that is relatively constant for agen-c ies up to $10 million in revenue
( Fig. 7, Page 9).
C ruises from U.S. and fore ign ports accounted for 30%.
B ookings for hotels and all-in-
c lusive resorts came to 25%.
( Cruise sales for most agencies
t end to include other bundled
c omponents, such as air, or
p re- and post-cruise hotel ac-
International travel as a
p ercentage of revenue has
been growing consistently for sever-
a l years (Fig. 8) and now approaches
half of total sales (47%). This trend
could reflect an emphasis by trav-
Continued on Page 12
Years in business (all agencies )
21 to 30 years
Single location agency
More than 30 years
11 to 20 years
6 to 10 years
3 to 5 years
2 years or less
$20M or more Under $500K